3 Ways to Strengthen Your Investor Relations Program
The following article has been posted on
The Actionable Ideas Blog by
Julie Huang, President of
Kaimen Company.
If you are like me always looking for ways to execute the best investor relations (IR) program possible, then please read this post.
Though there are many possible ways here are three simple ideas you can use to beef up your IR program for your publicly-traded company. You may even be implementing them already:
1. Frequently Take the Pulse of the Investment Community
Set up a handful of open-ended questions to ask. The best time to take a survey of the investor community is right after:
- an earnings announcement and/or conference call;
- a road show
- any meeting
These surveys can be done over the phone or in person and can be reported back to management on an unattributed basis. I usually like to contact at least five investors, organize their responses into categories, and then provide quotes when possible. I put these into a written report for management and include a section that outlines recommended next steps. Make sure that it is clear to the reader whether your statements represent your opinion or the opinions of the investors that you surveyed. Please note that when speaking to investors, it is a good idea to try to spend more time asking questions than talking. If investors ask you questions about your company's business, then be sure to refer them to information you have already shared publicly.
2. Speak to One Potential Investor a Week
You can either wait for investors to seek out your company, or you can find them yourself and introduce your company. Most management appreciates the latter. I look for new investors who currently own or recently owned stocks of peer companies. If they currently own the peer stocks, then this may mean that these investors have an understanding of the market. This may also mean that introducing my client's company and industry to these investors may require less of a learning curve. Alternatively, I like to approach investors who have recently owned stocks of peer companies. I usually want to find out why they unloaded these shares from their portfolios. Their reasons, if they choose to share them, may reveal their thoughts about the companies' industry or business. This kind of information can be helpful when you present your company or handle investor relations. You may uncover industry knowledge gaps that your company could plan to address in the future. Be sure to track your calls, and let management know how you are doing. This will make it easier for you to refer to the interactions you had, as well as the results, during (follow-up conversations, meetings, and conferences).
3. Circulate a Sign-Up Sheet at Investor Presentations
Let's say that your company is scheduled to make a presentation at one of the investment banking conferences. Great! You now have a room full of people who have decided to pay attention to your story. They know who you are. You don't know who they are. Consider circulating multiple clipboards with sign-up sheets to collect names and email addresses. I tend not to ask for more information because even asking for affiliation or a phone number may deter people from signing up. After the event, send an email to find out if you can set aside some time to follow up with them and collect some feedback. Yes, this goes back to the suggestion made in point number one to collect feedback for your management team.
So, what do you think? Do you have three tips of your own to share? Please share this article with others and post your comments below.
@2011 Kaimen Company.